Johannesburg - The controversial business organisation for black-owned small- and medium-sized businesses (SMMEs), the National African Chamber of Commerce (Nafcoc), is facing an array of problems that threaten to thwart its ambitious goal of creating 100 000 new SMMEs by 2010.
Buhle Mthethwa, the president of Nafcoc, told more than 5 000 small business owners at the federation's annual conference in Durban last week that the organisation has been dogged by a lack of resources, infrastructure, capacity and leadership.
She pointed out that the establishment's grim state of affairs has led to the poor servicing of its members, estimated at 250 000.
Mthethwa also admitted that the federation has been embroiled in leadership battles in the past in national, provincial and sectoral structures.
The infighting has threatened the very existence of Nafcoc. "We need to acknowledge openly that there are some leaders with narrow thoughts who view leadership positions to be the conduit to access business opportunities," she said.
Fighting for power
The infighting that plagued the federation often emanated from jostling for positions at elective annual conferences and over disagreements on the disbursement of Nafcoc's investment funds.
Nafcoc's mandate includes the facilitation of economic growth by fast-tracking transformation and broad-based black economic empowerment (BBBEE) that would result in the creation of jobs and elimination of poverty.
But Nafcoc seems to be failing to play this important role as it is struggling to deal with issues of transformation and gender equality within its own ranks. Mthethwa expressed concern over the lack of transformation and gender inequality in all governance and leadership structures of Nafcoc.
She said women occupy only seven positions of the 60 in the federation's national general council.
The organisation seems to also be failing to achieve its ambitious goal of creating 100 000 SMMEs over a five-year period. Last week, Nafcoc's general manager, Vukile Nkabinde, told sister publication City Press that since 2005, the organisation had created only 1 000 SMMEs. This is a resounding failure as the 1 000 new SMMEs represent only about 1% of the target.
A warning
Analysts have warned that without a tangible strategy to achieve this mammoth task, Nafcoc's ambitious plans will not succeed.
Others have questioned the apparent alignment of Nafcoc with the South African Communist Party (SACP).
Addressing delegates at the conference, Blade Nzimande, the SACP's secretary general, said that his organisation would not meddle in the affairs of the business federation. But he said the SACP was concerned about instability at Nafcoc.
He said: "There's a need to mobilise Nafcoc but it seems to be stabilising. We (SACP) have been concerned about the infighting and instability in the organisation. The SACP will support you in your efforts to build a strong organisation."
Nafcoc has also been criticised within its own ranks for failing to provide any benefits to its members.
Some analysts, however, are optimistic that the current leadership seems to be turning the organisation in the right direction.
Three major initiatives
Nafcoc has announced three major initiatives aimed at benefiting its members. These include a co-operative bank, a funeral scheme and a business procurement opportunity that is set to benefit more than 70 000 SMMEs.
The possible partners in the co-operative bank initiative include Absa, the Industrial Development Corporation, the National Empowerment Fund and the Micro Apex Fund.
Nzimande said the co-operative bank needed the support of the big banks but warned against it being an "appendage" to them.
"We don't want a cooperative bank that is an appendage to the big banks. They can help us build it but we want to control it. We want to build what is ours, not theirs," he said.
Mthethwa is optimistic that the initiative will succeed, promising to roll out cooperative banks in all nine provinces. "Historically, as blacks, we have always believed in cooperatives, but we have failed to support and align them with business opportunities," she said.
Rector Rapoo, who is responsible for the formalisation of companies and co-operatives at the Companies and Intellectual Property Registration Office (Cipro), said though the number of cooperatives were growing in the country, many black-owned cooperatives still do not have access to finance.
In its last financial year, Cipro more than doubled the 6 765 cooperatives it registered the previous year to 13 496.
- City Press